Seven reasons why SaaS is better than ERP
Published: March 13, 2020 - Written By: Hassan 6 min read
You know a new study has revealed that 75% of ERP projects fail; Goosebumps!! Right? Yes, the time, money and efforts spent in implementing an ERP all goes in vain.
Nike’s famous $400 million lost in a failed ERP software package that followed by a lawsuit; and HP’s $160 million lost in revenue due to a glitch in an ERP software; it has compromised the reputation of the Fortune 500 companies.
Highly expensive licenses of the ERP software; in addition to the license, hiring the services of another implementing partner is cumbersome. The companies spend time in exploring, negotiating and finalizing a software and then they have to do the same for procuring an implementing partner. They also need to replace some of their workforce with certified resources to run the software in day to day business.
On the other hand SaaS-based software are easy to be explored, the free trials are available and companies such as OrderMS (Free Trial) offer customized demos. Companies don’t need to hire services of a third party implementing partners but the turn key solutions model makes it easier for clients to implement the system.
Here are seven key reasons why SaaS software are better than on-premise ERP solution.
1. Cloud Computing
Cloud computing has transformed the way companies would do businesses in past. It has helped them reduce the cost of establishing big servers and DRs to service model of acquiring low cost but high speed servers. Cloud computing’s service model is gaining fast popularity; 21 percent software that companies use today is delivered as service; such as: Gmail account, or Facebook for advertising, or Githhub, or slack they all use cloud servers to provide you with the services.
Now, imagine establishing your own servers for the tools your company use for day to day business. It would not only have sucked a lot of your liquidity but; it would still have carried a lot of risk in maintaining to provide uninterrupted service to end users.
2. Pay As You Go
The Software as Service (SaaS) gives you freedom to pay as much as you use. Most of the SaaS-based software are available on monthly and annual subscription basis. Unlike to its counterpart ERP solutions that require you to pay upfront for the license you acquire; no matter when and how you use it.
Imagine you are running an advertisement on Facebook Adds for your furniture business in Huston area. Facebook as a service provider will let you select your demographic and will only charge you for the number of target audience and the number of days you advertise your product.
SaaS based software vendors allow its users to pay using their credit card or PayPal accounts; makes it easier for it’s’ subscribers to pay and go.
3. Easy to Implement
Have you ever used Mail Chimp to send marketing emails to your thousands of contacts?
Just imagine a similar solution for your on premise ERP that would allow you to email broadcast to your contacts. The time and efforts it would pull to implement will be extraordinary and would put you in a state of comma. And each time you need to do the same; you would require an expert to do it for you.
Whereas, using Mail Chimp all you need to do is to subscribe with the service using your email ID, Pay using your credit card, import your contacts and broadcast your message. You don’t need to be an expert in IT or software, all you need to do is to have a Common Sense.
Every SaaS based software is designed to be extremely user friendly with the intuitive UI & UX. Since SaaS based software are used by hundreds and thousands of companies worldwide from developed countries to the developing countries. Countries with state-of-the art facilities with the limited facilities; they are designed in a way that it is used by anyone and anywhere.
The most important ingredient of SaaS-based software is its user experience. The UX designed for OrdeMS was done by keeping two principle in mind:
- Wow Factor
- Common Sense
The company wants its users to say Wow as many times as they land on their software. The software navigation would provide users with the WoW factor.
Secondly, software is designed and built in a principle that it would provide users with a self-understating of how to navigate and bring the best value of the software. The software is extremely easy to understand so that someone with the knowledge its business can easily use the OrdeMS.
5. Tireless Service
As it name shows Software as a Service; SaaS based companies only exist because they provide their clients with round the clock customer services. These companies put in place a robust customer services department with the facilities to connect with the end users on a real-time basis. Most of the SaaS companies include the customer services charges in their subscription fees and some charge separately.
However, in ERP software you need to hire services of a third party company that would not only take a bunch of days and sometimes in months to resolve a minor issue. And the money it cost you is sometimes unrealistic.
OrderMs provides its clients with tireless services to keep its clients happy and satisfied. Learn More
6. No Installation
Back in days when SaaS was not an option; companies used to buy licenses and install the software on servers. The Installation of a particular software needed to buy other programs of a particular specification of the machine with other Add-On were necessary. You would need to have an expert to install the software on a server machine and on other client machines as well.
Resulting in a hectic time and efforts with high probability of issues and bugs.
SaaS software eliminated this old age practices. Most of the SaaS-based software are available over the internet and would only require a gadget and internet connectivity. The SaaS software are mainly run using the internet browser with unique username and password. You don’t need to have a specific machine and specifications to run your software.
SaaS software companies also provide their clients with Mobile Application such as Android and iOS that would bring a superior experience to the users. Providing them notifications and alerts on the go would not be possible with the on-premise ERP solutions.
7. Easy to Exit
One of the most important aspect of any software is to evaluate the possibilities and probabilities of exit. Companies switch form one software to another for a bunch of reasons, such as:
- Change in business model
- Switching the business
- Closing the operations in a particular area
- Change in regulations
Top ERP software providers even fail to provide the best solution in any of such issues. There is likelihood that SaaS- based software providers would not meet the requirement of its customer in any of such happening. In that case, companies would like to exit form one software and switching to another. In such a case SaaS based software providers would charge nominal amount to its clients based on the number of users in most cases and would keep the instance up and running. Exporting data in any form from a SaaS software is much easier.
However, in contrast ERP solution would charge you heavy and will take a lot of time to provide you the data that you require. You would need deploy experts that would help you with exporting the data and would cost you more than even you anticipate.
Fortune 500 companies are rapidly switching to SaaS-base model for their business processes. It is just a matter of time when most of the companies would be throwing away their gigantic ERPs to most intuitive SaaS based software.